Positive Facilities or Ejabiah in Saudi Arabia Award Basic Banking System Contract to Islamic Software Provider Path Solutions


The newly formed finance company in Saudi Arabia, Positive Facilities Co. Ltd. (Ejabiah), would have entered into an agreement with Path solutions for the introduction of its basic interest-free banking platform.

Ejabiah will be to supply a one-time 0% interest financing product, which is somewhat similar to Qard Hassan or a voluntary loan. As mentioned in the announcement, Ejabiah will come with the strategy of further expanding the use of digital financial services at affordable costs in the Kingdom and will also allow SME to access cost-effective financing services.

The company’s five-year plan is to serve approximately 50,000 Saudi Arabia-based SME clients with cost-effective 0% interest finance loans with an estimated total number of finance deals to exceed 30 million annual transactions.

The interest-free Ejabiah product is seen as a reliable option to enable financial inclusion by providing financing to consumers who cannot access commercial microfinance loans due to lack of affordability (due to relatively high financing costs) , lack of established credit history. , or be part of a market that is not properly served by incumbents.

“Ejabiah will champion a more sustainable, diversified and transparent bank in the Kingdom through the implementation of a positive banking concept to create a more prosperous future for all,” explained Riyad Al Rabiah, MD to Ejabiah.

Al Rabiah added:

“We believe now is the perfect time for our incorporation with a business strategy to meet the demands of more sophisticated banking clients. Our IT unit understands the vital role of digital technology in today’s banking and financial services industry to help clients identify the right financial solutions to achieve their goals, both for current and future needs.

Al Rabiah also mentioned that “as a newly established company in Al Khobar, Saudi Arabia, Ejabiah will have the advantage of launching innovative products and services without interest to its customers while capitalizing on the latest digital alternatives.

Ejabiah would serve small businesses and entrepreneurs focused on the food and beverage sector, retailers, entrepreneurs, small industries and workshops.

Path Solutions’ Sharia-compliant core banking solution has been customized to ensure product market fit with ‘positive’ banking services, and to meet regulatory requirements while leveraging Open Banking technology, which can improve Ejabiah’s profitability, perceived value and quality.

Mohammed kateeb, Chairman and CEO of the Path Solutions Group, added:

“We are delighted to have our first cloud-based iMAL subscription in Saudi Arabia hosted on the Oracle cloud. This SaaS model will continue to gain momentum in the region as it delivers superior economy, enables digital transformation, improves efficiency and lowers costs. It provides our customers with a highly secure, compliant, available and scalable system while reducing the physical infrastructure footprint and allowing them to focus on growing their business.

The newly launched finance company Positive Facilities (Ejabiah) is preparing for deployment in the sandbox of the Saudi Central Bank (SAMA) and is expected to start lending operations in the fourth quarter of 2021.

This initiative will be launched in three different phases with a total estimated duration for an achievement of approximately 11 months. The initial phase is expected to be completed within 7-8 months to allow Ejabiah to further expand its business activities.

About Ruben V. Albin

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